Gold is trading within a narrow range ahead of the NFP
In the middle of complicated economic conditions, we can see that gold is trading within a narrow range after the rate decisions yesterday from the BoE and the ECB, in addition to Trichet's press conference and data from the US jobs market which complicated the markets' performance and where it's heading. Today the markets are waiting for the key US Non farm payrolls and the unemployment rate which will cause a great volatility in markets.
Gold opened today at $1532.10 an ounce recording the intraday high at $1532.50 an ounce, and the low of $1529.42 an ounce and is currently trading around $1513.05 an ounce.
The dollar index, which tracks the dollar movements versus a basket of major currencies, rose today ahead of the NFP, as it opened at 74.90 recording the highest at 75.01 and the lowest at 74.87 and is currently trading around 74.96.
The European Central Bank voted to raise rates by 25 base points and took the benchmark interest rate to 1.50%, Trichet's conference was the main event especially after the Governing Council decided to suspend the minimum required collateral rules for Portugal in the refinancing operations in light of Moody's decision to cut the rating to junk.
Haven demand was lost on gold yesterday with the positive decision from the ECB on collateral and also from the upbeat ADP and jobless claims figures as they were strongly positive compared to expectations, further restricting gold's momentum.
Today the tight range trading is expected until the NFP, which its expected to have added 105,000 jobs in June and anything better will ease the slowdown concerns and might even support the longer term journey for the dollar, but more upbeat figures will surely keep the gold losing upside momentum on eased jitters and haven demand.
Among other metals, silver dropped today as it opened at $36.42, recording the highest at $36,53 and the lowest at $36.13 and is currently trading around $36.16.